Jaguar Land Rover halts US exports in April amid new auto tariffs

Jaguar Land Rover

Jaguar Land Rover (JLR), the luxury vehicle arm of Tata Motors Ltd., has temporarily paused shipments to the United States this April in response to new U.S. tariffs on foreign-made automobiles.

The decision comes after the U.S. President Donald Trump imposed 25% tariff on all imported fully assembled vehicles on April 2. The order also applies to auto components, with the tariff set to take effect on those items from May 3.

“The USA is an important market for JLR’s luxury brands. As we work to address the new trading terms with our business partners, we are enacting our short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” a JLR spokesperson told NDTV Profit.

While India’s car manufacturers are expected to face minimal direct impact, given their limited export volumes to the U.S., Tata Motors may still feel a hit through its British subsidiary, JLR.

According to the Global Trade Research Initiative, India’s car exports to the U.S. stood at just $8.9 million in 2024, a mere 0.13% of the country’s total automobile exports, which reached $6.98 billion.

However, JLR  derived 23% of its revenue and 26% of its wholesale volumes from the U.S in FY24. That share further rose to 33% in the nine months ended December 31, 2024.

As the automaker assesses long-term implications of the tariff hike, analysts say the pause in shipments signals broader uncertainties for global auto manufacturers operating in the U.S. market.